IndiGo, the largest domestic airline in India measured by market share, has signed a memorandum of understanding with Airbus for a firm order of 250 of the aircraft maker’s new A320neo. At list prices, the order is worth about $26 billion.

The A320neo (new engine option) is Airbus’s re-engined version of its A320, a single-aisle, narrow-body passenger jet that is a direct competitor to Boeing Co.’s (NYSE: BA) venerable 737 and its new 737 MAX. This is the second large order announcement for Airbus since last Friday, when a Chinese aircraft leasing firm ordered 70 of the current model A320ceo (current engine option) in a deal worth about $7 billion at list prices.

IndiGo already owns a fleet of 83 A320-200s and had a clear preference for adding more Airbus planes to its fleet. The airline has previously placed orders with Airbus for a total of 180 A320neo and 100 A320ceo jets.

The airline is lining up a $400 million initial public offering, according to a report from Bloomberg News, and Wednesday’s announcement strengthens the airline’s public perception as a company that will be in business for a long time. IndiGo’s goal is to build a fleet of 1,000 jets to accommodate the expected growth in India’s domestic demand for air travel.

Airbus stock was trading down about 2% in Paris Wednesday morning, at €45.00 in a 52-week range of €41.61 to €57.33.

Boeing stock closed up 1.53% on Tuesday, at $122.29, and was inactive Wednesday morning. The stock’s 52-week range is $117.87 to $144.57.

ALSO READ: Boeing’s 20-Year Forecast Tops Airbus

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